The UGDC loan program is designed to provide funds for bricks and mortar improvement to real estate in the Uptown Special Tax District. To obtain a loan application or any additional information, contact the Uptown Manager. Guidelines for an UGDC loan are provided below.
Uptown Greenwood Development Corporation
UDAG Loan Policy Guidelines
1. The main purpose of this loan program is to provide funds for improvements/renovation (brick & mortar) to real estate in the Uptown Greenwood Special Tax District assisting current Uptown business owners or businesses wanting to locate in the Uptown area.
2. Loans will be made to property owners as well as lessees. Lessees must provide the loan committee a copy of their lease agreements and permission from the property owner for improvements to be made.
3. Each applicant will be required to complete a loan application, submit two years historical financial statements and/or tax returns for the business, and submit a letter outlining the loan amount requested the purpose of the loan, and a brief description of their business. A completion date of the project should also be included.
4. All loan requests over three thousand dollars will require the completion of a personal or company financial statement, depending on the type of business organization. All approved loans will be personally guaranteed by the borrower.
5. When the property is owned by the applicant, a mortgage will be placed against the property securing the loan amount. Any loan over $5,000 should be secured. If the property is not owned by the applicant, the loan request will be considered unsecured unless other collateral exists. A mortgage will be recorded only when sufficient equity exists to cover the loan proceeds.
6. Loan terms are normally not to exceed five years.
7. The interest rate will be set 2% below the current prime rate of interest, not to go below 3%, for the life of the loan. Any loan exceeding 5 years will have a rate of not less than 5%.
8. The total amount each applicant may receive should not exceed 50% of the total cost of improvements.
9. The dollar amount available to an applicant may not exceed 50% of the total funds available at any given time. The applicant may reapply for additional funds three months after the first loan is disbursed.
10. Funds will be disbursed based on final invoices. Large loan requests may be funded based on partial completion and at the discretion of the loan committee.
11. All loan requests will be submitted to the City of Greenwood Loan Advisory Committee, comprised of the City Manager, Assistant to the City Manager, Finance Director and Uptown Manager, for review. It will be the responsibility of the loan committee to gather any and all information needed to make a recommendation to the Board of Directors. All loan approvals require a vote of two-thirds majority of the Board.
12. The loan applicant is responsible for paying all costs involved in closing the loan. These typically include legal and recording fees and documentary stamps.
13. The Uptown Greenwood Development Corporation does not discriminate against applicants based on sex, race, religion, color, national origin, marital status, handicap or age.
14. Loan payments of principal and interest may be deferred up to three (3) months upon approval by the Loan Advisory Committee. All requests for a onetime loan principal or interest deferral will require an explanation as to why the deferral is needed. Interest will continue to accrue on the loan during the deferral period. Deferral of loan principal payments or loan interest will result in higher monthly payments, a balloon payment, or may extend the loan period as determined by the Committee.